Tullow secures deal with Kenyan govt

Kenya

MOMBASA, March 15, 2017 – Tullow Oil and the government of Kenya have inked a production agreement that will pave the way for the country’s early crude export plans, local media reported.

Signed on Tuesday, the deal will set in motion a pilot export programme to assess the marketability of Kenyan crude. Starting next month, the government aims to begin transporting between 2,000 and 4,000 bopd from the Turkana fields.

The oil will be carried by trucks and railway to storage tanks at the Kenya Petroleum Refineries’ site in Mombasa. Half of the refinery’s 45 tanks will be used to store crude for export. The remaining volume is earmarked for processing once refurbishment work on the plant is complete.

Using a major 865-kilometre export pipeline to Lamu port, Kenya plans to ramp up exports to some 100,000 bopd from 2020 onwards.